Zee Entertainment Enterprises Q2 FY27 Results

Summary

Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.

Consolidated profit before tax fell 45.3% to ₹63.10 crore from ₹115.40 crore a year earlier, and tax expense fell 55.0% to ₹17.50 crore from ₹38.90 crore. Profit attributable to shareholders was ₹47.80 crore against ₹76.50 crore a year earlier, and basic EPS was ₹0.50 against ₹0.79.

Other income was ₹22.60 crore against ₹26.40 crore a year earlier and ₹31.20 crore in the quarter before. Depreciation was ₹42.80 crore against ₹57.10 crore a year earlier.

The statutory auditors' review report on the consolidated results says their conclusion is not modified on two matters: the SEBI investigation and show cause notices, and the JioStar arbitration. JioStar's damages claim in that arbitration is US$1.097 billion. Management believes the claims are unfounded and that the company is not in default of the Alliance Agreement. The final evidentiary hearing was completed in this quarter, both parties have filed post-hearing briefs, and the order is awaited from the Tribunal.

The auditors' report on Zee Studios Limited carries an emphasis of matter on the cancellation of a Jaipur land lease by RIICO, and the consolidated conclusion is not modified for it. Management believes the company has a sound legal position and that no impairment is required. Yes Bank has amended its claim in the English Court to assert claims against ATL Media Limited under the Put Option agreement and the License Agreement. Management believes Yes Bank's claims under the Put Option agreement are not tenable.

Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.

Standalone total income rose 21.6% to ₹2,272.70 crore from ₹1,869.20 crore a year earlier. Revenue from operations was ₹2,063.80 crore, up 11.7% on ₹1,847.80 crore, and other income was ₹208.90 crore against ₹21.40 crore.

Profit before tax was ₹217.50 crore against ₹108.80 crore a year earlier and ₹67.70 crore in the quarter before. Tax expense was ₹7.70 crore against ₹30.50 crore a year earlier, and basic EPS was ₹2.18 against ₹0.82.

The notes say other income includes a dividend of ₹192.40 crore received from a subsidiary company, for the quarter and for the half year ended 30 Sep 2026. Subsequent to 30 Sep 2026, the company transferred its investment in Margo Networks Private Limited to its wholly owned subsidiary Zee Studios Limited.

Inference

On 1 Jul 2026 the Board approved issue of up to 24,94,85,563 warrants at ₹126 each, an aggregate ₹3,143.50 crore, on a preferential basis to a Promoter Group entity. Shareholders approved the issue at an Extraordinary General Meeting on 31 Jul 2026. The company has received ₹735.50 crore, 25% of the issue price, and allotted 233,507,071 warrants, which can be converted within 18 months on payment of the exercise price.

SEBI's order of 31 Jul 2026 imposed a penalty of ₹30 lakh on the company and restrained it from accessing the securities market for two months. The company has appealed to SAT, which on 14 Aug 2026 stayed the order's directions for the limited purpose of the warrant allotment; the main appeal is pending. Subsequent to 30 Sep 2026, the company received a notice from the Ministry of Corporate Affairs under Section 210 of the Companies Act, 2013, and says it is preparing its submission.

The filing does not say why standalone other income is so far above the year-earlier quarter, or what caused the fall in consolidated profit before tax.

Reference: Original filing (PDF)